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Stabroek News

Partial rollback on fertiliser price
published: Tuesday | March 4, 2008

Shelly-Ann Thompson, Staff Reporter

Domestic food crop farmers have been relieved of the 30 per cent increase in the price of fertiliser as a result of the Government's intervention.

The Government will continue to subsidise the cost of the farming ingredient for these farmers.

In a meeting that concluded late yesterday, the Ministry of Agriculture and Newport-Fersan, the island's sole manufacturer of fertiliser, came to an agreement to roll back the increase on some types of fertilisers.

Minister of Agriculture Dr Christopher Tufton, told The Gleaner that after consultation with John Allen, managing director of Newport-Fersan, a decision was made not to increase the cost of fertilisers before April 1.

Fertilisers, which will not attract this increase, are used specifically in the growth of fruits and vegetables.

On Monday, Newport-Fersan had applied a 30 per cent increase on the price of the commodity.

$70 million subsidy

However, a month ago the Government had applied a $70 million subsidy on the ex-factory price of the commodity.

"The Government is going to continue its commitment until March month end of not increasing the price of fertiliser," said Tufton.

The minister said within a few days an announcement would be made regarding fertilisers for those within the sugar and banana industries.

Allen explained why fertilisers used within these two sectors would attract the 30 per cent increase.

"We will have to bill them at the new prices pending the intervention of the ministry. We cannot apply any more of the subsidy to these category of farmers."

With the increase, the average cost of eight of the popular grades of fertiliser is $2,994.21 before the subsidy. With the subsidy, it is $2,695 per bag. Distributors, however, will add their respective markups.

John Wayne, a farmer of Bull Savannah, St Elizabeth, said he currently pays $2,700 for a bag of fertiliser, which is a strain on him.

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